9. Sari Tagore obtains a $1,000 loan to purchase a laser printer. Her interest rate is 7% ordinary interest for 108 days. 9a. What is the interest owed 9b) What is the maturity value of the loan?

Q: years. The interest rate is i(12) = 8.750%. What is the outstanding balance on the loan just after…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%,…

A: The objective of the question is to calculate the Effective Annual Interest Rate (EAR) and the…

Q: Jumbo Bato borrowed money from Rovin Patila,payable for 3 years. If the interest rate per year is…

A: Data given: Interest rate (r) = 9% p.a. (assumed simple interest rate) n= 3 years   Loan amount (P)…

Q: Bank D gives a loan of RM 30,000 to Shahril with interest rate of 8.25% compounded quarterly.…

A: Compound amount of single sum can be calculated by using this equation A=P(1+r)n Where A= Final…

Q: Juan Pablo borrowed $1500 from a bank for 13 months. The bank discounted the loan at 5.7%. What is…

A: The loan discount refers to the loan in which the borrowers get the money after reducing the…

Q: Devon takes out a loan of $1500 at 6 1/2 % simple interest for 56 months. What is the maturity value…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: 2. Determine the total interest to date.

A: The objective of the question is to determine the balance on Andisiwe and Thobela's home loan as of…

Q: Payment rate = i 729.18 dollars per year Interest paid i 12395.98

A: We first need to determine the effective annual rate using the formula below: EAR = einterest rate -…

Q: An investor received a promissory note for $120,000 at an interest rate of 8% on July 15 with…

A: Value of Promissory Note is $120,000 Interest Rate is 8% Issued Date is July 15 Maturity Period is…

Q: Wade Ellis buys a new car for $16,882.14. He puts 10% down and obtains a simple interest amortized…

A: An amortized mortgage refers to a type of loan where the borrower makes regular payments over a…

Q: Chandrika deposits $500 in an account paying an effective quarterly interest rate 2.01875%. Muhammad…

A: Present Value:  The present value (PV) is the present sum of the future payments. The future…

Q: 2. Janica received a loan from her bank for Php 4,085 for a period of one year. The interest rate is…

A: Interest on Loan: The expense of borrowing money is represented by interest. When loan disbursements…

Q: Daysha bought a house with a mortgage of $395,100. The mortgage is being financed with an interest…

A: We need to use NPER function in excel to calculate number of payments in both ordinary annuity and…

Q: On September 14, Jennifer Rick went to Park Bank to borrow $3,600 at 9.25% interest. Jennifer plan…

A:

Q: Caridad borrowed $17,500 at 11% ordinary interest for 160 days. After 60 days, she made a partial…

A: The final amount is computed by adding the loan amount and interest due and then subtracting the…

Q: 9. Jared will repay a mortgage over 25 years. This table shows 2 of the Раyment number payments.…

A: Equated Monthly Payment or EMI is a fixed amount paid every month by the borrower. It includes both…

Q: If Christine borrowed P 75 000 from the bank at an interest rate of 3.5%, how much is the interest…

A: Solution 1: Interest in 8 months = P * R * T

Q: Question 17 Mr. Yuson obtained a 20-year mortgage for PhP 2,200,000. If his monthly payment is PhP…

A: concept. Total interest paid = Total amount paid - amount of loan.

Q: nna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 20%…

A: We need to use loan amortization formula to calculate monthly payment. The formula is  PMT…

Q: Christine applied for a cash loan at PCG money lending company amounting to 100,000 pesos at 10.68%…

A: Cash loan (C) = 100000 pesos r = 10.68% n = 12 payments

Q: . Simple Interest Solve the following Problem 1. A man borrowed P45,000 from a lending institution…

A: Simple interest is the rate of interest calculated on the principal amount at the percentage which…

Q: If Rita receives $36.44 interest for a deposit earning 6% simple interest for 10 days, what is the…

A: Interest received = $36.44 Interest rate = 0.06 or 6% Number of days = 10 Amount deposit = ?   In…

Q: O a. $1,054,602.46 b. $1,044,056.44 c. $970,234.27 d. $1,022,964.39 O e. $991,326.31

A: First, we need to calculate the bi-weekly payment amount. We know the mortgage amount, the interest…

Q: 1. find the interest rate. (round your final answer to the nearest percent) P=$55, I=$3.30,t= 6…

A: Bartleby honor code states that when motile questions are asked, the expert is required only to…

Q: Ibrahim has a mortgage of $429,000 through his bank for property purchased. The loan is repaid by…

A: Any sum borrowed to meet any specific personal or business needs is regarded as a mortgage/loan. The…

Q: If Rita receives $36.44 interest for a deposit earning 6% simple interest for 10 days, what is the…

A: To calculate the deposit amount we will use the below formula   Deposit amount = I/(r*d/365) Where I…

Q: 8. Joseph borrowed a single-payment loan of $12,000 at an interest rate of 15%. The term of the loan…

A: For calculating exact interest, 365 days for normal year and 366 days for leap year will be taken as…

Q: 4. Liam borrows $10,000 at an effective periodic rate of i. The loan will be paid back with 10…

A: In order to show the proof, we will have to use the converging series concept of siminishing…

Q: Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the…

A: Data given: P=Loan amount = $ 5,500 r=Rate= 8.11% p.a. Date of the loan = September 7 Date of…

Q: 13. Manuel lends Jahib $75 for 3 days. Manuel is paid back $80. Interest is compounded daily.…

A: Solution Given Amount given $75 Period 3 days Compounding Daily Amount paid…

Q: Anna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 15%…

A: Mortgage Payment. The amount that the Borrower is expected to pay in respect of its Mortgage Loan on…

Q: jackal promises to pay 1000 at the end of 6 months in obtaining a loan from a banker b who charges…

A: Effective interest rate is the interest rate that is earned or paid after considering the…

Q: Q.Mr. Jasim receives a note for $60,000 which is due in 180 days with simple interest rate of 15%.…

A: Amount of note= $60,000 Time to maturity= 180 days Discount rate= 12% Discount charges:…

Q: On October 5, Tristan Sandino borrowed $3,050 to buy an English bulldog. The loan carried a rate of…

A: Simple Interest=  Principal* rate of interest* number of days/Number of days in a year.

Q: Theodore D. Kat is applying to his credit union for a mortgage of $200,000. The bank has quoted 8%…

A: Calculating Effective Annual Rate using Excel Effective annual rate functionEAR = 8.30%

Q: On September 12, Jody Jansen went to Sunshine Bank to borrow $4,200 at 8% interest. Jody plans to…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.